Brewer and bar owner BrewDog is hoping to raise £4m from beer drinkers to fund its expansion plans.

The fast-growing company, which trumpets its punk credentials, will make 42,000 shares available to the public at £95 each, to fund a sevenfold increase in production at its Ellon brewery near Aberdeen and open its first shops, starting in London.

James Watt, BrewDog co-founder, claimed the so-called "equity for punks" scheme was the world's largest crowdfunding initiative. The share sale underscores how many entrepreneurs are turning to the public to raise money, rather than use banks or venture capital funding.

"As we need funds for more growth plans, we never considered a bank or an investment group," Watt said. "[Equity for punks] proves that there is a viable alternative to the financial establishment. As the self-interested banks continue to stunt economic growth, people are looking for better places to put their money

This is the third time BrewDog has sold shares direct to the public, after hitting targets to raise £2.2m in 2011 and £750,000 in 2009, through similar crowdfunding schemes.

The Aberdeen-based company has recorded average annual growth of 167% over the last five year and hopes to hit turnover of £20m this year. The owner of 12 bars in the UK and one in Stockholm, it is also planning bars in São Paulo and Tokyo.

BrewDog shareholders will get a lifetime discount on the company's portfolio of more than 30 beers, which include its top-selling Punk IPA , as well Dead Pony Club and Hardcore IPA.

Founded in 2007, BrewDog revels in pitting itself against what it calls "the status quo of fizzy mass-produced tasteless lagers". At its annual meeting on Saturday existing shareholders will enjoy beer tastings and punk rock.